Malaysia is taking significant steps toward sustainable energy by planning to produce Sustainable Aviation Fuel (SAF) starting in 2027. The country’s Plantation and Commodities Minister, Johari Abdul Ghani, confirmed that Malaysia aims for an initial production capacity of one million metric tons of SAF per year.
Gradual Increase in SAF Production
The production capacity will gradually increase as factory output and feedstock availability grow, according to Minister Johari. Malaysia, as the world’s second-largest palm oil producer, is well-positioned to become a global leader in SAF production. The government sees this as a major opportunity to boost the country’s green energy transition.
SAF Blending Mandate Under the National Energy Transition Roadmap
The Malaysian government has outlined an ambitious plan for SAF production in its 2023 National Energy Transition Roadmap. The roadmap sets a SAF blending mandate, starting at 1% and targeting a 47% blend by 2050.
Johari revealed that EcoCeres Renewable Fuels Sdn Bhd and Petronas are working on constructing SAF refineries with production capacities of 350,000 and 650,000 metric tons per year, respectively. Once both plants are operational, Malaysia will have the capacity to produce one million metric tons of SAF annually.
Also read: Southeast Asia to Supply 12% of Global SAF Demand by 2050, Study Shows
Malaysia’s SAF Potential and Export Opportunities
The minister also pointed out that Malaysia could export any surplus SAF to countries that do not produce it, expanding the country’s role in the global SAF market.
The Malaysian government is considering tax incentives to attract investors and establish the country as a hub for SAF development. This strategy aims to support local industries, including small farmers and palm oil producers, as SAF production can utilize palm waste, creating added value.
Also read: South Korea to Mandate 1% SAF in International Flights Starting 2027
Southeast Asia’s Growing SAF Landscape
Malaysia is not alone in promoting SAF in the ASEAN region. Singapore plans to require all flights to use SAF by 2026. Depending on availability, they also aim to increase SAF usage to 3-5% by 2030. Meanwhile, Indonesia has flown its first commercial flight using palm oil-blended jet fuel. This marks a significant step in Southeast Asia’s commitment to sustainable aviation.
With growing momentum in the region, Malaysia’s SAF initiatives could shape the future of green aviation fuels globally.